Engaging a Real-Estate Developer for an Off-Plan Project
AdvisorLB Team
Off-plan acquisition (buying before construction completes) typically promises a 15–30% discount versus a ready-key unit. After the events of 2019, buyers — especially diaspora ones — are demanding tighter protection.
Verify the developer
- Cross-check the company registration at the commercial registry; ask for the latest financial statements.
- Visit two finished projects of the same developer and speak to the syndic.
- Check whether the project's building permit (rukhsat al-bina') has been issued by the municipality — start of works without it is a major red flag.
The contract clauses to negotiate
- Fixed delivery date with a daily liquidated-damages clause if the developer is late.
- Payment milestones tied to verifiable construction stages, not calendar dates — engineer's certification at each milestone.
- Escrow or bank guarantee for at least the early deposits.
- Specifications annex describing every finish at brand-and-model level. Ambiguous descriptions ("high quality marble") get downgraded silently.
- Penalty for material changes to the floor plan or common areas.
- Currency clause spelling out USD vs LBP obligations after Lebanon's 2019 events.
The closing
Title transfer happens at the cadastre once the building reaches the agreed completion stage. Combined registration fees and stamp duty are around 6% of declared value. Keep a hold-back of 5–10% until snag-list items are closed.
Resale considerations
Some developers restrict resale before delivery without their approval. If you may want to flip the unit, negotiate this clause before signing — not after.